Ganesh Benzoplast: The stock is expected to perform well going forward | Ganesh Benzoplast: Expect an upside potential of 15% | Indianotes.com
Expanded its storage capacity at INPT & Cochin terminals, is further expected to generate good revenue from the LST division with its maximum capacity utilization & reduction in the finance cost, is also planning to set up a LPG terminal at its GOA facility.
Expect Rs80cr Revenue from Infra business, improve Revenue & profitability in chemical business too
Ganesh is expecting a top line of Rs80 crore from the infra business & on the Chemical division front, to improve the revenue & profits, the Company is in process of expanding its product base & increasing the capacity utilization of plants, up gradation of manufacturing facility & adding some more products with greater margins & higher demand in this segment.
Stellar Performance- Q2 FY18 results
– Company achieved a higher income of ¥38.7 6 crore, an increase of 62.8% compared to Q2 FY 17.
– Strong growth of 58.8% in terms of EBITDA compared to Q2 FY 17.
– PBT during Q2 FY 18 stood at ?7.7crore, an increase of 510% on Y-O-Y basis.
– Strong growth of 391% in terms of PAT compared to the same quarter of previous year, thereby increase in EPS to ?1.51 in Q2 FY 18.
The debt of the company is reducing & management expects finance cost to be at Rs8-9 crore for a year. Also, net worth to be positive by March 31.
Demerger – Value creation
The Company is planning to segregate both the(Liquid Storage Terminal and Chemical manufacturing) divisions of the Company either by Demerger or Slump Sale, the plan is to create two separate entities – chemicals and infrastructure as decided by the the Board in its Meeting held on August 18, 2017. As both the divisions has totally different synergies to ensure greater focus, to enhance profitability & generate maximum shareholder value, it will be more beneficial for the Company in long run.
India’s largest provider of conditioned storage facilities for bulk liquids and chemicals
Liquid Storage Terminal division provides storage tanks which are leased on rent for storing liquid chemicals, acids, phenol, oil products, petrochemicals, molasses, edible oils etc and has a combined storage capacity of more than 3,00,000 KL, for storage of all types of Liquid Products. Under Chemical Division, the Company markets its products (food preservatives, lubricant additives, specialty Chemicals) through distributors in Africa, North America, North Europe, India, Australia and the Middle East.
The Company’s products have been enjoying consistently good brand image and loyalty from the consumers for the past several years and enjoys virtual monopoly in Sodium Benzoplast in India. The markets for products of the Company are well established with a good distribution network for domestic as well as export markets.
Foreseeing the bright future ahead, Debt reduction , Additional capacity to meet near term business growth by way of expansion in IN PT and GOA ports, increase in promoter stake by purchasing from open market, Reputed client base( HLL, Parle Agro, Coca Cola, Reliance, Jubilant, Fenner, ONGC, lOCL, Castro], Barmer Lawrie, Polartech and many more) expected growth in demand of chemicals & petroleum products in the country, the stock is expected to perform well going forward.
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